Two modified procedures for estimating standard deviations in utility analyses

Abstract

F. L. Schimdt et al (see record 1981-02231-001 ) developed a procedure for obtaining rational estimates of the standard deviation of job performance in dollars (SD y ). A problem in using their procedure is that it can yield large variation in percentile point estimates across judges. Two modified procedures using consensual feedback were tested with 26 high-level managers to determine if the new procedures could reduce this variability. The normality assumption of the utility estimates yielded by the Schmidt et al and modified procedures was also investigated, and SD y estimates from the Schmidt et al and 2 modified procedures were compared to each other and to a performance and salary distribution. Results indicate that one of the modified procedures offers an improved practical means of obtaining rational SD y estimates in utility analyses. (19 ref) (PsycInfo Database Record (c) 2025 APA, all rights reserved)